As Africa’s startup ecosystem continues to evolve, FollowICT highlights the week’s most significant developments across the continent—from venture studio breakthroughs in Nigeria to strategic capital flows in East Africa and beyond.
FirstFounders Bets Big on AI Startups in Nigeria
FirstFounders (F2), a Nigerian venture studio, is challenging conventional startup acceleration models with a thesis rooted in deliberate, hands-on risk mitigation. The firm released a report last week detailing its approach, which diverges sharply from traditional accelerators.
Unlike accelerators that offer distant guidance, F2 operates as a co-founder—building alongside entrepreneurs and investing from day one. According to a report by The Condia, the studio focuses on AI-driven ventures in fintech, consumer tech, and entertainment.
F2’s portfolio includes six startups with an average multiple on invested capital (MOIC) of 6.5x and targets an internal rate of return (IRR) of 50%. Its support model includes:
- $120,000 in direct operational funding at launch
- $250,000 in partner investment for scaling
- Up to three years of comprehensive product, tech, and legal support
The portfolio is designed for early acquisition and job creation, aligning with SDG Goal 8. Notable ventures include:
- Pocketlawyers, Africa’s first fully integrated legal tech startup, led by Ngozi Nwabueze
- Korinai, an AI-powered African music generation platform
- Zurri, an AI marketplace for fashion agents and models
Ampersand Secures $7M to Expand Electric Motorcycle Fleet in East Africa
Ampersand, a leading electric mobility company in Africa, has closed a $7 million working capital facility from British International Investment (BII), the UK’s development finance institution.
The round was supported by Seedstars Africa Ventures, Gaia Impact, Rwanda Green Fund, and Raspberry Syndicate. Existing investors—including Ecosystem Integrity Fund, AHL Ventures, Acumen, and TotalEnergies—also increased their stakes. The total round size remains undisclosed.
Funds will be used to scale Ampersand’s electric motorcycle fleet and expand its battery swap station network across East Africa. The company aims to double its battery fleet by early 2026.
Japanese VC Uncovered Fund Launches $20M Africa-MENA Investment Vehicle
In a strategic move underscoring Japan’s growing interest in Africa’s tech landscape, Uncovered Fund has partnered with Monex Ventures to launch a ¥3 billion ($20 million) fund targeting early-stage startups across Africa and the Middle East and North Africa (MENA).
The newly formed Monex Africa Investment Partnership will focus on startups building digital and physical infrastructure. The fund has identified four strategic sectors:
- Fintech
- Distribution networks
- Mobility solutions
- Sustainability initiatives
The launch comes amid a downturn in African venture capital activity. According to recent industry data, VC funding in Africa fell to $2.2 billion in 2024—a 25% drop from 2023—reflecting global headwinds in startup financing.
REdimension Capital Closes $14M Proptech Fund in South Africa
Johannesburg-based REdimension Capital has closed its inaugural real estate technology and sustainability fund with commitments exceeding ZAR 250 million (approximately $14 million), making it South Africa’s only dedicated proptech and sustainability fund.
New backers include Hyprop Investments and RDC Property Group, joining a roster of investors managing over 750 commercial buildings and 12 million square meters of leasable space—from Growthpoint Properties to Rand Merchant Bank.
Since its 2023 launch, the fund has invested in:
- Admyt (ticketless parking)
- RE-Tec Solutions (tenant lifecycle management)
- Roomking (informal rental marketplace)
Co-founders Peter Clark and Matthew Marshall describe the fund’s mission as a “catalyst for digital transformation in real estate,” combining capital, strategic partnerships, and industry networks to support emerging technologies.
500 Global and UNDP Launch Innovation Programs to Boost Africa’s Startup Ecosystem
Global VC firm 500 Global has partnered with the United Nations Development Programme (UNDP) to roll out its first founder-focused programs in Nairobi, marking a significant step in strengthening Africa’s innovation landscape.
Three programs will be hosted in Nairobi this year, each tailored to different stages of the startup journey:
- Pre-Accelerator Academy (October 6–12): For founders in the ideation phase, offering hands-on guidance and foundational skills
- Sustainable Innovation Seed Accelerator: For seed-stage startups tackling environmental and social challenges, with tools to attract investment and scale impact
- Accelerator Manager Bootcamp: Designed for incubator and innovation hub leaders, linked to UNDP’s Timbuktoo initiative to expand Africa’s innovation capacity
The bootcamp will focus on upskilling managers to better support founders and foster long-term innovation across the continent.
EBRD Eyes Nigeria After Backing Egypt’s Leading Tech Startups
The European Bank for Reconstruction and Development (EBRD) is preparing to launch operations in Nigeria this year, signaling a potential influx of capital into the country’s vibrant tech sector. This expansion follows a period of concentrated investment in North African startups.
EBRD is currently establishing its first resident office in Lagos and actively recruiting key staff, including a country director. Nigeria formally applied for EBRD membership in April 2024, and the bank’s Board of Governors approved the application the following month.
This move is part of a broader strategy to expand into sub-Saharan Africa, approved at EBRD’s 2023 Annual Meeting. The bank’s focus will be on mobilizing private sector finance to drive sustainable, long-term growth.
While EBRD’s mandate spans infrastructure, green energy, and human capital, its recent activity in North Africa reveals a strong interest in high-growth tech ventures. In Egypt, EBRD has built a robust portfolio, including:
- Fintech: $21 million commitment to MSS Holding and participation in Paymob’s $22 million Series B alongside PayPal Ventures
- Insurtech: Led a $2.3 million round for Amenli
- E-commerce: Invested $10 million in online grocery platform Breadfast
- Venture Capital: Acted as a limited partner in Algebra Ventures’ second fund
Similarly, in Tunisia, EBRD participated in a $20 million Series B round for fintech firm Expensya.
EBRD typically operates as a minority investor, acquiring stakes of up to 35%. While its direct equity investments range from €10 million to €200 million, its venture arm issues smaller, tailored checks for startup rounds—such as those seen in Egypt.
